Burnham says he is on a \u201c10-year mission\u201d to transform the country. So what might he do to try to fix the British economy?<\/p>\n
One thing that voters can reasonably expect is a move towards greater devolution of power \u2013 especially spending power \u2013 to the English metro regions. As mayor of Greater Manchester, Burnham often argued<\/a> that too many economic decisions were made in London, and that this held the rest of the country back. <\/p>\n Burnham believes that allowing other regions to implement their own locally led pro-growth policies could transform Britain\u2019s economic prospects. It\u2019s a view shared by one of his key economic advisers, Jim O’Neill<\/a>, who has long argued<\/a> that creating metro growth hubs could substantially boost the UK\u2019s GDP.<\/p>\n This approach is bound to be controversial. It could mean, for example, taking resources away from the \u00a349 billion<\/a> Heathrow airport expansion plan to help fund HS2 so it can reach the north. <\/p>\n More radically, it might require a revamp of the whole system of local government finance, starting with reforming the council tax system, which is still entirely based on property values set in 1991. <\/p>\n This would mean higher bills for areas where house prices are high, such as London and the south-east. But it could substantially cut payments for those living elsewhere \u2013 which could be popular in red wall constituencies where Labour has been losing support.<\/p>\n Burnham has also spoken about reforming the UK\u2019s social care system<\/a>. Social care is not part of the NHS, which means those who need residential care in old age must either sell their house to fund it, or rely on cash-strapped local councils. <\/p>\n Finding a solution to social care has proved too challenging for successive governments. When Burnham was health secretary under Gordon Brown in 2010, he proposed<\/a> putting a tax on the value of homes after the owner\u2019s death \u2013 which critics labelled a \u201cdeath tax\u201d. <\/p>\n Nevertheless, he may try something similar as prime minister. Solving the social care conundrum would dramatically ease<\/a> the financial strain on the NHS. <\/p>\n Another cause that Burnham has recently embraced<\/a> is tackling the poor performance of the companies that supply households with energy and water. <\/p>\n First in line would be Thames Water<\/a>, which is already facing bankruptcy and a temporary government takeover. A straight-out nationalisation of water would be expensive, with that company alone currently valued at \u00a310 billion<\/a>. <\/p>\n But better public utilities could also boost productivity. Housing development in East Anglia is now being held back by lack of water<\/a>, for example, as no new reservoirs have been built in the UK since 1992<\/a>. And a water company which didn\u2019t have to pay out hundreds of millions of pounds to shareholders could mean lower household bills.<\/p>\n Burnham has promised to stand by Labour\u2019s commitments not to increase VAT, income tax or national insurance. He has also pledged to stick by Labour\u2019s fiscal rules<\/a>, including the key stipulation that day-to-day government spending must be covered by tax revenues within three years, so that borrowing can only be for long-term capital investment. <\/p>\n These rules have been structured in such a way that could still give a Burnham administration considerable leeway<\/a> to boost spending on public infrastructure.<\/p>\n Burnham could argue that increasing public investment this way would pay for itself by boosting UK productivity. <\/p>\n He may also want to look at other ways the Treasury could raise money without breaking Labour\u2019s manifesto pledges. There are quite a few options, including higher wealth taxation, or changes to tax relief on pensions and savings. <\/p>\nSocial care<\/h2>\n
Nationalisation<\/h2>\n
![\"Thames](\"https:\/\/images.theconversation.com\/files\/744515\/original\/file-20260626-57-jqf0ui.jpg?ixlib=rb-4.1.0&q=45&auto=format&w=754&fit=clip\")
\n Yau Ming Low\/Shutterstock<\/a><\/span>
\n <\/figcaption><\/figure>\nBending, not breaking, the fiscal rules<\/h2>\n
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